$190,000 Saved By Improving Employee Retention
CBM and Castle HR worked together to reduce employee turnover from 12% to 5% by fixing how people were hired, reviewed and coached. This saved the firm 6 figures in employee replacement costs.
$190K Saved | Employee Churn Reduced from 12% to 5%
Clients have made The Globe and Mail’s Fastest-Growing Companies list
Star Average Rating on Google Reviews
Average years of experience of our Senior HR Professionals
Long-Term Contracts
Recruiting Fees Billed
“At 30 people, we were holding HR together with spreadsheets and duct tape. Trying to scale to 55 people through acquisitions would have been chaos without Castle HR.”
In August 2024, CBM was an ambitious accounting firm with a team of 30 people and a turnover of 12%. Not bad, as the average is 15-20% for professional services firms.
But they wanted to do better because they had goals to grow by acquisition and knew they needed better systems to justify the required investments.
No single process was obviously broken, but several small issues were compounding.
Hiring decisions could depend too heavily on “gut feel,” leaving different interviewers with different opinions about the same candidate. Once a hire was decided, reference and background checks were not consistently formalized.
Performance reviews varied by manager because no formalized process existed. As a result, employees did not receive a consistent standard across the firm.
These were the two biggest gaps creating a recurring, expensive retention leak.
Turnover didn't look terrible, but it was costing CBM six figures annually.
The solution was a new people system, not a hazardous retention perk.
Castle HR did not try to fix turnover with one survey, one workshop or one shiny benefit.
Instead, we strengthened the systems employees experienced from the first interview through their ongoing performance and development conversations.
CBM credits the improvement to the combined effect of these changes, not one magic retention tactic.
1. How to Actually Hire With Evidence, Not Instinct
Castle helped CBM build a more structured hiring process.
Candidates were asked stronger situational questions connected to the realities of the job. Interviewers used a candidate scorecard to assess people against the same standard.
That dramatically changed the internal post-interview conversation.
Instead of comparing who made the best personal impression, CBM could compare which candidate best matched the role, values and expectations.
Castle also helped formalize reference and background checks, clarify expectations during probation and make compensation conversations more proactive.
The objective was to hire people who were more likely to succeed and stay.
2. How to Give Every Employee the Same High Experience
Castle built CBM’s managers a performance review system in their new HRIS, BambooHR.
Employees were no longer receiving a different quality of review depending on which manager happened to lead them. Everyone received a more thorough conversation about expectations, performance, values and development.
The firm moved to two thorough formal reviews each year, including one after the busy tax season, supported by monthly one-on-ones between every manager and employee.
“Castle HR built us a process that fit our business instead of forcing a template to fit.”- Sarah Guyatt, Director of Operations & HR, CBM
3. Make Managers the First Line of Retention
A performance process only works when managers know how to use it.
Castle trained CBM’s managers on:
- Giving useful feedback
- Delivering performance reviews
- Running effective monthly one-on-ones
- Understanding employee workload and state of mind
- Addressing concerns before they became resignations
Castle also delivered firm-wide training on time management and provided practical stress management support before tax season.
Managers gained clearer tools for leading people through the realities of a deadline-driven industry.
The Systems Castle HRÂ Build for CBM
- BambooHR Implementation
- Core Values
- Accountability Chart
- Situational Interview Questions
- Four Point Candidate Scorecard
- Reference and Background Check Process
- Compensation Guidance
- Probation and Hybrid Work Expectations
- Twice Yearly Performance Reviews
- Monthly Manager One-on-Ones
- Manager Feedback Training
- Time and Stress Management Training
The value was not one new document or one manager workshop.
The real value was that hiring, performance, compensation, management and HR operations began working together.
How did the new retention rate impact CBM's bottom line?
After two years, CBM’s turnover had fallen from 12% to 5%.
Which is an impressive 58% reduction.
Here is the math on the financial impact of the now 55 person firm:
‍
- 55 employees Ă— 12% turnover
- Approximately 6.6 departures annually‍
- 55 employees Ă— 5% turnover
- Approximately 2.75 departures annually
- Difference
- Approximately ~4 fewer departures each year.
‍
CBM estimated that a typical person hired by the firm earns approximately $90,000 to $100,000.
- ‍Using 50% of salary as a conservative replacement cost:‍
- $95,000 x 50% = $47,500 x 4 = $190,000 in savings a year
- This gave CBM a HUGE ROI on the investment in Castle HR, and it grows every year!
- ‍
“Before Castle HR, hiring could come down to who made the best impression. Now we have one scorecard, one standard and far fewer employees leaving in their first year.”
What could an extra $190,000 do for your business?
Castle HR and CBM didn't fix employee retention with a survey, a workshop or a shiny new perk. They fixed the systems people actually experience including how they're hired, reviewed, coached and kept. This saved the company $190,000 that they are now able to invest elsewhere. Book a call and we'll show you the same systems that took CBM from 12% turnover to 5%, and what that math looks like in your business.
